Special Notes and Tax Documents

2106 Business Expenses are limited to the amount deductible for federal tax purposes.

AGE EXEMPTION

Individuals under 18 years of age are exempt from paying municipal income tax.

BALANCE DUE/OVERPAYMENT INFORMATION

Amounts under $10.01 will not be collected or refunded. The $10.01 de minimis threshold does not apply to amounts required to be withheld by employers.

ESTIMATED PAYMENT REQUIREMENTS

Quarterly payments of estimated tax are required if the anticipated amount due is $200 or more.

LOTTERY/GAMBLING WINNINGS

Lottery and gambling winnings are taxable - no minimum. Gambling losses may not offset gambling winnings unless the taxpayer is a professional gambler per IRS regulations.

NET OPERATING LOSS

Beginning with losses incurred in 2017, a net operating loss may be carried forward for 5 years. For losses incurred in tax years 2017, 2018, 2019, 2020 and 2021, only 50% of the carried forward loss may be deducted in each subsequent year. For pre-2017 losses see Special Notes For Tax Years 2015 and Prior.

S-CORPS

S-Corp distributive shares that do not represent wages are generally not taxable and should not be reported on Form 37.

WITHHOLDING FILING FREQUENCY

If withholding amount is $2,400 or more in the immediately preceding calendar year or more than $200 in any one month of the preceding calendar quarter, file monthly - due date is the 15th day of the following month. All employers not required to file monthly, file quarterly - due date is the last day of the month following the end of the quarter.

Individuals under 18 years of age are exempt from paying municipal income tax.

BALANCE DUE/OVERPAYMENT INFORMATION

Amounts of less than $1 will not be collected or refunded.

ESTIMATED PAYMENT REQUIREMENTS

Quarterly payments of estimated tax must be made if the anticipated amount is over $100.

LOTTERY/GAMBLING WINNINGS

Lottery/Gambling winnings are taxable - no minimum.

NET OPERATING LOSS

A net operating loss may be carried forward for 5 years.

RENTAL INCOME

Rental income is taxable provided that total gross rental is in excess of $250 per month.

S-CORPS

S-Corp distributive shares that do not represent wages are generally not taxable and should not be reported on Form 37 Schedule J.

WITHHOLDING FILING FREQUENCY

It is required that on or before the last day of each month, the taxes withheld in the previous month be paid and Form 11 filed with RITA. However, if the amount withheld in any one month for a municipality is less than $100, the employer may defer the filing of Form 11 and the payment of the amount withheld until the last day of the month following the end of each calendar quarter.